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India's Prism Johnson posts bigger-than-expected Q2 loss on tepid cement demand

Indian construction products maker Prism Johnson on Wednesday published a. biggerthanexpected quarterly loss, as cement costs. persistently decreased and demand remained tepid.

The company's combined bottom line stood at 897.9 million. rupees ($ 10.6 million) in the 3 months ended Sept. 30,. marking a second straight quarter of losses. Prism Johnson had. reported a net earnings of 1.83 billion rupees a year ago.

The reported loss is likewise bigger than the analysts'. quotes of a 122.8 million rupee loss, based on data put together by. LSEG.

Average cement rates slumped to a 51-month low around. July-end and the very first half of August, and only increased partially. in the later part of the quarter, Elara Capital said in a note.

Costs for the total quarter declined 7% year-on-year, the. brokerage included.

Need in the noted quarter was also mostly muted as the. market, already struck by an election-linked slowdown in. construction activity in the June quarter, did not see any. enhancement due to above-average rainfall in the nation.

The company's net sales dropped 5.2% to 16.39 billion. rupees, owing to a 17% decline in its cement organization, which. comprises 37% of the revenue.

Prism Johnson's other two organizations - tiles and concrete. mix - posted a 1% and 0.4% drop in profits in their respective. segment.

The business's shares, which remained in the red ahead of. outcomes, fell 2.5% post outcomes.

India's top cement maker, UltraTech Cement, missed. second-quarter revenue price quotes on lower rates and bleak. need.

(source: Reuters)